When it comes to the overall success of your business, one of the most important decisions you\u2019ll face is how to price for the work you do. Charge too much and you could scare away potential customers. Charge too little and you could run yourself out of business.<\/p>\n
Figuring out how much to charge is stressful, but it\u2019s worth it. If your business doesn\u2019t bring in enough money to pay all the bills and compensate you, it isn\u2019t going to last long.<\/p>\n
So, how can you tell if you\u2019re asking too little for your services? Here are some signs you need to consider charging more, and soon.<\/p>\n
Many small business owners have periods where they don\u2019t feel motivated to work. That\u2019s normal. But what\u2019s not normal is repeatedly taking on projects (or clients) that you don\u2019t feel are worth the money they bring in. You may feel obligated to do the work, but there might also be a sense of resentment about it. Working may feel like a chore.<\/p>\n
If the work doesn\u2019t feel as though it\u2019s worth the money you\u2019re making, that\u2019s a sign you need to charge more. You don\u2019t always have to feel keen to work, but you should feel as though you\u2019re being fairly compensated for what you do.<\/p>\n
Which brings us to the second sign\u2026<\/p>\n
Small business owners have a tendency to make sure everyone else is taken care of first. There are bills to pay, marketing to take care of and, sometimes, employees who need to earn a living. You can\u2019t forget about yourself, however.<\/p>\n
If your business doesn\u2019t bring in enough to make sure you bring home a reasonable salary then you aren\u2019t charging enough for your services. You own a small business so you can be in control of the work you do\u2014you should also be in control of your salary. If you don\u2019t make a salary, you need to charge more and you need to do so quickly.<\/p>\n
If you can\u2019t remember the last time you raised your prices\u2014or you can but it was a long time ago, then you need to increase your rates. The cost of living is constantly on the rise and so is the cost of doing business. If your cost of doing business increases but your prices don\u2019t, you\u2019re earning far less from your small business than you used to, or than you should. Don\u2019t go longer than two years without reviewing and increasing your prices. Ideally, you should review your prices annually.<\/p>\n
It can be daunting to think about raising your prices, but it\u2019s important to do. You work hard as a small business owner and you deserve compensation for the time you put into your business. You also need to charge enough to ensure all your business expenses are paid for and that you can withstand a cost of doing business increase.<\/p>\n
If changing your prices for current customers seems overwhelming, start small. Set higher prices for your services and charge new customers those rates. If you\u2019re concerned about losing existing clients by raising prices too high too quickly, increase their rates incrementally. You can also give your clients plenty of notice about the increased rates, so they have time to become used to the idea.<\/p>\n
The really good customers and clients will understand that you need to raise the rates and will support you for doing so. Those who don\u2019t probably weren\u2019t great clients to begin with.<\/p>\n
Got a question about your business? Get in touch with us today.<\/p>\n","protected":false},"excerpt":{"rendered":"